Bahrain Tax Rates
Bahrain does not impose personal income tax and has no corporate income tax for most businesses, making it one of the lowest-tax jurisdictions globally. Only oil and gas companies pay a 46% tax on profits. Bahrain introduced a 10% VAT in January 2022, making it one of the later GCC countries to implement the tax. The Bahrain Economic Vision 2030 guides ongoing fiscal reforms, and a 15% Domestic Minimum Top-up Tax (DMTT) was introduced from January 2025 for large multinationals.
Top Income Tax Rate
0%
Corporate Tax Rate
0%
VAT / Sales Tax
10%
Capital Gains Tax
0%
Detailed Tax Information
Income Tax Brackets
Bahrain does not impose personal income tax on individuals. There is no tax on employment income, investment income, or any other personal income. This applies to both Bahraini nationals and foreign residents. Bahrain is one of the few countries globally with zero personal income tax.
| Income Range | Tax Rate |
|---|---|
| BD 0+ | 0% |
Corporate Tax
Bahrain does not impose corporate income tax on most businesses. Only oil and gas companies pay a flat 46% tax on net profits. From January 2025, Bahrain introduced a 15% Domestic Minimum Top-up Tax (DMTT) applicable to large multinational enterprise groups with global revenue of EUR 750 million or more, aligning with the OECD Pillar Two framework.
Standard Rate
0%
Capital Gains Tax
Bahrain does not impose capital gains tax. There is no tax on gains from the disposal of any type of asset, whether shares, real estate, or other investments. This applies to both individuals and companies (except oil and gas companies).
Rate
0%
VAT / Sales Tax
Bahrain introduced VAT at 5% on January 1, 2019, and increased it to 10% on January 1, 2022. VAT applies to most goods and services. Essential items including basic food, healthcare, education, and real estate (first sale of residential property and residential rent) are zero-rated or exempt. Financial services are generally exempt. Bahrain was the third GCC country to implement VAT after Saudi Arabia and the UAE.
Standard Rate
10%
Cryptocurrency Tax
Bahrain has not introduced specific cryptocurrency tax legislation. Since there is no income or capital gains tax for most entities, crypto gains are not taxed. The Central Bank of Bahrain (CBB) has been proactive in regulating crypto assets, establishing a comprehensive licensing framework for crypto-asset service providers. Bahrain has positioned itself as a crypto-friendly jurisdiction in the Middle East.
Tax Treaties
Bahrain has approximately 44 double taxation agreements in force. While the zero-tax environment reduces the practical importance of tax treaties for domestic tax relief, they help Bahraini businesses operating abroad avoid double taxation. Bahrain has signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
Treaty Network
44
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Bahrain
See how much you could save by moving here from your current country.
+$16K
Tax in United States
$24K
24.4% effective
Tax in Bahrain
$8K
8% effective
You Save
67.2%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
